Well-being consequences of economic and environmental vulnerabilities: Does social protection mediate the process?

Abstract

The study evaluates the mediating role of social protection expenditures in achieving well-being against the economic and environmental shocks in developing countries. The empirical analysis is based on unbalanced panel data of 94 developing countries, covering from 2001 to 2019.  Using three indicators of well-being, the research shows that social protection expenditures have a significant mediating role economic and environmental shocks to maintain the national level of food security, increase household expenditures, and increase human asset accumulation in developing countries. The study highlights that social protection expenditures have a much more vital mediating role against environmental shocks than macro-economic vulnerabilities. These results have a firm policy implication for increasing public allocation to expand social protection programs.